MCDONALD S CSR REPORT 2018
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Company Overview McDonald s Company (Japan), Ltd. Contents Street address Shinjuku iLand Tower 6-5-1 Nishi-Shinjuku, Shinjuku-ku, Tokyo TEL 03 - 6911 - 5000 01 Company overview, company Date of establishment May 1, 1971 information, corporate philos- Capital 100 million yen ophy, editorial policy and table Business description Management of hamburger restaurant chain and all other relating businesses of contents Number of restaurants 2,899 Revenue 524.2 billion yen (includes both company-operated and franchised restaurants) 02 Top Message Number of staff full-time employees (2,213; exclude directors and contract employees) Part-timers: approx.150,000(includes both company-operated and fran- 03 Scale for Good chised restaurants) (as of December 31, 2018) 04 Aiming for a sustainable society Company information Food safety and security For management philosophy, company profile and history of McDonald s Holdings Employment information Company (Japan), Ltd., please the visit company information homepage of our offi- Environment information cial website: http://www.mcd-holdings.co.jp/company/ Social contribution Corporate governance http://www.mcd-holdings.co.jp/ir/governance/ 08 Food Foods management and fundamen- Corporate philosophy tal principles for suppliers Quality assurance program from Our approach on restaurant business = QSC&V farm to restaurant As quick service restaurant brand, our mission is to remain as our customers favor- Information disclosure ite place and way to eat by running great restaurants and upholding our philosophy of QSC&V (Quality, Service, Cleanliness and Value). http://www.mcdonalds.co.jp/company/outline/rinen/ 11 People People business 13 Community Editorial policy Social contribution activities This report describes our actions on Corporate Social Responsibility. It is our wish to share McDonald s CSR and relevant initiatives with stakeholders and contribute to achieving a sustainable society. 15 Planet Waste measures and environmental conservation Energy measures and restaurant CSR Reporting Scope environment Target business McDonald's Company (Japan), Ltd. (including McDonald s Holdings Compa- ny (Japan), Ltd.) 17 McDonald s SDGs Target dates January 1, 2018 to December 31, 2018 Target contents corporate social responsibilities (business, social and environment) 18 Comments from a third party Editor and contact Communication & Corporate Relations Division person Shinjuku iLand Tower 6-5-1 Nishi-Shinjuku, Shinjuku-ku, Tokyo TEL: 03 - 6911 - 5000 CSR Report 2018 1
Top Message Our business offers high-quality, delicious and safe foods that customers can enjoy with peace of mind in a comfortable dining environment. While this is com- mon sense, it is our responsibility and provides the underpinning of our business. At the same time, we know that our business exists only because of the society in which we operate. McDonald s is a global brand with restaurants in more than 100 countries around the world. In Japan, we welcome more than 1.4 billion custom- ers a year in our approximately 2,900 restaurants, served by over 150,000 crew members. We have a serious responsibility to the society in the way we operate our business. In 2018, McDonald s Corporation announced a global initiative called Scale for Good to tackle worldwide challenges facing society. In March 2019, under this initiative, McDonald s Japan formulated three specific pillars of commitment to families , sustainable food sourcing and package & recycling . Based on com- mitments in these areas, we are developing and implementing specific measures to realize a sustainable society while continuing to ensure food safety, make social contributions, become more environmentally responsible and further develop our people. All these actions are linked closely to the United Nations Sustainable Devel- opment Goals (SDGs). Representative Director and Chairman, It is our strong belief that through a deeper understanding and pursuit of cor- McDonald's Company (Japan), Ltd. porate social responsibility, now and for the future, we will be able to contribute to Sarah L. Casanova society and make the world a better place. CSR Report 2018 2
Scale for Good Together for a Better Future McDonald s Responsibilities McDonald s is well-known in over 100 countries around the world. Commitment to Families http://www.mcdonalds.co.jp/company/scale_for_good/family/ About 150,000 crew members are working at 2900 restaurants in Japan and 1.4 billion guests are visiting us every year. Serving so many guests with our delicious meals comes with a serious responsibility of acting on social and environmental issues the world face today. We believe that we can play our role by lever- Sustainable Sourcing aging McDonald s global strength and business scale. McDon- http://www.mcdonalds.co.jp/company/scale_for_good/sourcing/ ald's Japan is committed to realize a sustainable society by focusing on three pillars that prioritize Commitment to Families, Sustainable Sourc- ing and Packaging & Recycling. However we cannot do these on our own; only by working Packaging & Recycling together we can achieve these goals. http://www.mcdonalds.co.jp/company/scale_for_good/packaging/ Scale for Good - Together for a Better Future http://www.mcdonalds.co.jp/company/scale_for_good/ CSR Report 2018 3
Aiming for a Sustainable Society Food Safety and Security Mieru; McDonald s Quality Passion of our suppliers and staff http://www.mcdonalds.co.jp/safety/tsukurite/ Food actions Quality improvement measures 100% commitment http://www.mcdonalds.co.jp/safety/taskforce/ http://www.mcdonalds.co.jp/safety/good_quality Actions to ensure safety and security Food journey http://www.mcdonalds.co.jp/safety/food-safety/ http://www.mcdonalds.co.jp/safety/factory Actions on trans-fatty acid Allergy information and country of http://www.mcdonalds.co.jp/safety/trans_fat/ origin information http://www.mcdonalds.co.jp/safety/allergy_Nutrition/ Food Safety / Quality Summit Industry-Academia-Government On October 10, 2018, Food Safety/Qual- collaboration ity Summit was held for the fourth time under the theme Evolvement of food We are working with the Kagoshima Uni- safety culture and pursuit of best-in-class versity to develop the next-generation food quality to focus and discuss ways to fur- experts with aim of securing sustainable ther enhance food safety and offer best- food safety. This Industry-Academia-Gov- in-class quality foods to our customers. ernment collaboration program is support- Three commitments were made on this ed by the Ministry of Agriculture, Forestry day by McDonald s and food suppliers. and Fisheries, Kagoshima Prefecture and Food Safety Management Association. http://www.mcdonalds.co.jp/company/ news/2018/1030a/ http://www.mcdonalds.co.jp/company/ news/2018/0126b/ CSR Report 2018 4
Aiming for a Sustainable Society Employment Female Information 2018 Total number of full-time employees 30 .2 2,213 company-operated stores only % Female restaurant Female 668 manager ratio Female ratio in managerial position director ratio director and above Male 25 8 69.8 % % 18 % % 1,545 2018 Total monthly overtime hours 2018 (company-wide) Number of users for flextime program for childcare 18.0 hrs 2018 Disabled staff ratio 2.2 2018 Number of users for maternity & nursing care leave program 19 % 2018 Total number of crew members 50 150,000 approx. CSR Report 2018 5
Aiming for a Sustainable Society Environment Company-Wide Food and 2018 Company-Wide 2018 Information Packages Waste Amount Energy Use 135,600 +6.8 % YoY tons crude oil equivalent 206,784 2.3 - % YoY kl As of December 31, 2018, our paper cups and packaging for customer use are near 100% FSC certified . As of the end of 2018, wrapping papers for hamburgers, paper cups and other paper packaging are near 100% FSC certified. FSC N002365 Food waste amount Usage amount per 1,000 customers electricity water 463 315.0 per 1 million yen sales per customer Animal oil and palm oil for French Fries and 90 32 McNuggets are RSPO certified (MB rank). In .5 kg .9 g .9 kWh .4 tons 2015, McDonald s Japan started to replace palm oil used in its restaurants with RSPO certified oil. +2.4 % YoY +4.8 % YoY 5.1 - % YoY - % YoY By the end of 2018, 100% of palm oil used in our *Food-service industry s food waste target: 108kg restaurants was replaced with RSPO certified oil. gas (city gas equivalent) 22 2018 Food recycle rate Hot tea bags used in our restaurants .7 53.4 are part of the Rainforest Alliance *includes outbreak m 3 Certified Farm Products. Tea leaves control based on peri- odic report for food 10.6 - % YoY Environment from the Rainforest Alliance Certified Certification recycling Farms are used in hot tea bags served at our restaurants. Phalaenopsis fish used in our Filet-O-Fish sandwich is from Alaska and supplied by certified fisheries with a fixed catch limit.While McDonald s Japan is already using sustainable 2018 whitefish source based on scientific evidence for our Filet-O-Fish sandwich, we are taking Happy Ribbon Project measures obtain MSC certification . joint project with the Ministry of the Environment The project collects Happy Meal toys that are no longer used to make recycled plastic serving trays. 2018 Received Food Industry http://www.mcdonalds.co.jp/company/news/2018/1107b/ Mottainai (wastefulness http://plastics-smart.env.go.jp/cases/?id=44 reduction) Committee Chair- man Awards in recognition of Penergy optimization measures through use of McDonald s PDCA cycle. http://www.mcdonalds.co.jp/company/ news/2018/0129a/ CSR Report 2018 6
Aiming for a Sustainable Society Social Contribution 2018 Sport Support 2018 Education Support Takamadonomiya Cup JFA Japan U-12 All-Japan Rubber Baseball Football Championship McDonald s Tournament Number of participant teams Number of participant teams 12,000 about teams about 9,000 http://www.mcdonalds.co.jp/company/community/sport/ teams Number of classes using 2018 2018 food education hour tool Charity Ronald McDonald House Sup- port total donation amount from Community Contribution 6,574 front-counter donation boxes Number of attendants 104.22 million yen 187,517 http://www.mcdonalds.co.jp/company/com- Disaster relief donation munity/ne_mc_support/ 15.8 Number of Number of distributed safety whistles Hello Ronald appearance 876,218 785 million yen http://www.mcdonalds.co.jp/company/ community/donald/ http://www.mcdonalds.co.jp/company/community/community_relations/ CSR Report 2018 7
Food Food Safety Food Quality Foods management and fundamental principles for suppliers McDonald s foods are made by domestic and overseas suppliers and delivered to our restaurants. We estab- lished a program to manage suppliers manufacturing process and food quality control to secure and deliver safe and high-quality foods to our restaurants. Fundamental principles for suppliers Food manufacturing McDonald s additional quality standards process management (Traceability system / crisis control / product inspection program, etc.) Partnership with our suppliers is built on fundamental principles set forth in Code of Conduct for Suppliers developed by McDonald s. GFSI approval scheme Food manufacturing process of our (FSSC2200/BRC/IFS/SQF/ This code of conduct includes compliance with relevant laws and suppliers must comply with all relevant JFS/ASIA GAP, etc.) regulations, work environment, environmental conservation and laws and regulations. In addition, the business integrity, and suppliers are required to agree and comply above process is managed by food with these guidelines. Details on code of conduct are specified in safety management system in line with GMP HACCP SWA: Suppliers Workplace Accountability Program , and an audit is Global Food Safety Initiatives (GFSI) conducted once a year to evaluate how these are implemented. based on GMP & HACCP programs as Relevant laws, http://www.mcdonalds.co.jp/safety/food-safety/ well as McDonald s Supplier Quality regulations and management System (SQMS) including requirements Code of Conduct for Suppliers McDonald s quality standards. Compliance with relevant human work environmental business Food quality management laws and regulations rights environment conservation integrity To ensure food quality, finished goods are subject to test analysis and sensory evaluation to ensure food at suppliers factories and shipped only Suppliers Workplace Accountability Program (SWA) after passing these tests. In addition, we conduct periodic sampling tests as well microbiological and physicochemical test analysis to confirm the An audit program to that code of conduct is executed and maintained effectiveness of suppliers management. McDonald s strives to ensure product quality by implementing these steps. CSR Report 2018 8
Food Quality assurance program from farm to restaurant McDonald s has developed its own global management system based on international standards. This system covers from farm to restaurant and includes a third-party audit program to verify the effectiveness of each process. http://www.mcdonalds.co.jp/safety/food-safety/ Traceability We built a traceability system with the ability to trace back the production history from raw materials to finished goods. This will enable us to quickly identify root cause and implement countermeasures in case of an incident. http://www.mcdonalds.co.jp/safety/food-safety/trace/ http://www.mcdonalds.co.jp/safety/food-safety/trace/trace1/ McDonald s quality as well as food safety & security management system Farm Processing Logistics / Warehouse Restaurants MGG SQMS DQMP ROIP GAP farm HACCP factories HACCP logistics HACCP restaurants Monitoring of residual GMP GWP GDP GCP agrochemicals Product inspection QIP quality control pro- SSOP Animal healthware, etc. program, etc. gram, etc. Confirm the effectiveness of the system through McDonald s quality and food safety management audit program CSR Report 2018 9
Food Information disclosure Food Product information are available in Mieru McDonald's Quality homepage to enjoy our delicious foods with peace of mind. http://www.mcdonalds.co.jp/safety/allergy_Nutrition/ Country of origin information Country of origin information includes the country of origin of main ingredients used in the product as well as the country of finished goods. http://www.mcdonalds.co.jp/safety/allergy_Nutrition/ Allergen information McDonald s allergen information is based on close examination of all raw materials and lists all allergic substances regardless of their content. Information is regularly updated to provide change in raw materials specifications and cross-contamina- tion during manufacturing and cooking process. http://www.mcdonalds.co.jp/safety/allergy_Nutrition/ Nutritional information McDonald's nutritional information is based on standard product Nutritional balance check specifications and numerical values of nutritional analysis based Visit this web page to learn how McDonald s menu items on food labeling standards (Food Labeling Act). Also, informa- can compensate (in percentage) for your recommended tion on some foods are based on quotations from Japanese daily nutrition intake. The above information includes food standard component 2015 edition (7th edition) (Ministry helpful advice per age and nutrient descriptions from managerial dieticians. of Education, Culture, Sports, Science and Technology). http://www.mcdonalds.co.jp/quality/basic_information/check.php http://www.mcdonalds.co.jp/safety/allergy_Nutrition/ CSR Report 2018 10
People Employee Value Proposition McDonald s suggests various work styles in our own way and based on the three perspectives of flexibility , future and family & friends . Also, we are committed to value that one can enjoy by working as a crew. http://www.mcdonalds.co.jp/recruit/fresh/mcdonalds/index.php5 People business Career Advancement People are the very source of corporate growth, and in that There are no predetermined career path system at McDonald s. Instead, sense, it can be said that McDonald s is a people business. we provide opportunities to develop individual growth and career and offer This is why we do all we can to support the development full support for each individuals as they take up challenging work tasks and make career advamcement. and career opportunities of our staff in their day-to-day http://www.mcdonalds.co.jp/recruit/fresh/career/index.php5 work routine. Performance Development System Based on our philosophy of when people grow, company grows as well , we developed a system called PDS (Performance Development System) to evaluate people and achieve the growth of both people and business. PDS sets targets and action plans that are linked with business performance and individual growth, and evaluates individuals based on the levels of target achievement and behavior. http://www.mcdonalds.co.jp/recruit/fresh/our_voice/voice06.php5 Education institution Hamburger University b u rgery Focused on education, Hamburger University offers programs that help people Hamniversit to acquire life-long leadership skills and business skills with the aim of taking initiatives and not just obtaining knowledge. U http://www.mcdonalds.co.jp/company/university/ Career Up CSR Report 2018 11
People Diversity & Inclusion AJCC All Japan Crew Contest We aim to create a workplace where a diverse team of people with dif- AJCC is a program that encourages crew members to be proud and set targets to ferent genders, ages, different personalities and backgrounds can make develop leadership skills. Each year, about 140,000 crew members join this contest the most of their strengths and contribute to business growth as a team. to compete their skills and hospitality in different positions. Starting from local http://www.mcdonalds.co.jp/recruit/fresh/our_voice/voice15.php5 restaurants and regions, selected winners go to the national final round. http://www.mcdonalds.co.jp/company/university/ajcc/ Employment of Disabled Persons Work-Life Balance Crew members with various disabilities are working at many of our restau- At McDonald s, we provide a work environment to achieve work-life balance rants. McDonald s is striving to develop an organization and environment through childcare and care-giving program , flextime program and reinstate- where diversified personalities and abilities are encouraged and respected. ment support program to support flextime work, telework, promotion of using http://www.mcdonalds.co.jp/company/community/employee/ annual pay leaves, maternity, childcare and care-giving leaves. http://www.mcdonalds.co.jp/recruit/fresh/our_voice/voice01.php5 All Japan & Crew Contest Diverssiitoyn Employee Inclu o r k - L i f e W lance Ba CSR Report 2018 12
Charity activities Education support Support to the Ronald McDonald House is our main focus. Ronald McDonald Various education support programs are provided by making good use of our House is facility built adjacent to hospitals for seriously ill children and fami- hamburger restaurant business, designed for children s growth stage from lies who live far away from the hospital. All the donations made at our restau- primary school, junior high school and high school. rants are sent to Ronald McDonald House Charities Japan. Also, McHappy Day and other events are implemented to promote charity support. Food education support http://www.mcdonalds.co.jp/company/community/donald/ Food education support program is implemented for children to learn the fun of eating and acquire correct knowledge and habits on foods. http://www.mcdonalds.co.jp/company/community/ne_mc_support/ Ronald McDonald House Japan HP http://www.dmhcj.or.jp Career education support McDonald s is a people business, which mean we have the means to develop people. At our nationwide restaurants, we provide learning grounds that take advantage of our approach and at the same time, support the education and growth of children in the community. http://www.mcdonalds.co.jp/company/community/mc_discovery/ Community Social contribution activities McDonald s is engaging in social contribution activities for healthy growth of children. http://www.mcdonalds.co.jp/company/community/ CSR Report 2018 13
Community Sports support Community contribution In sport, we focus on little league and youth football. In addition to Close to communities , McDonald s proactively engages in programs that contributes to sponsoring tournaments, we engage in team build-up events at local local residents such as cleaning and crime-prevention programs to create a safe place with McDonald s restaurants, give-away original baseball and football peace of mind. http://www.mcdonalds.co.jp/company/community/community_relations/ notebooks to promote healthy growth of children s heart and body. Takamadonomiya Cup Safety Whistles Child rearing support All-Japan Rubber McDonald s support the Child Rearing Support We work with local education board and police Baseball McDonald s to distribute safety whistles to new graders, con- Passport program , promoted by both the Jap- Tournament tributing to the local crime prevention and traffic anese government and local municpals. Cheese Known as the Koshien of elementary safety measures. In 2018, we revamped this Burger Happy Meal Set is offered at a special school , this is the biggest tournament for whistle by adding a reflector feature to support price whenever the Child Rearing Support schoolchildren who are part of the 12,000 traffic safety. Passport , issued by individual prefectures, is baseball teams in Japan. McDonald s Ja- presented upon ordering. pan, the special sponsorship for this event, has been playing this role for over 30 years. #110 House for Children http://www.mcdonalds.co.jp/company/com- - a place of safe haven - Hello Ronald Program munity/sport/mcd_tournament/ To protect our children in local communities, we McDonald s implements Hello Ronald! program promote #110 House for Children , where they can throughout Japan to share rules and manners freely run into McDonald s restaurants for safety in that children need to learn in their daily life. case of danger or problems. Also, we ve prepared #110 Child instruction book to learn the program at home with parents. Cleaning patrol Our nationwide restaurants are engaged in cleaning patrol to clean-up local communities. Also, they proactively participate in other clean- ing events promoted by local municipals and groups, working together with the community in making appealing towns. JFA Japan U-12 Football Championship JFA Japan U-12 Football Championship is the largest compe- tition event for primary school students that target the Japan Football Association Class-4 Team, which consists of players under 12 years of age. McDonald s Japan has been sponsoring this event from 2011. http://www.mcdonalds.co.jp/company/community/sport/football/ CSR Report 2018 14
Planet Waste measures and environmental conservation Knowing that the basics for waste measures is to contain waste , we are working on improving the restaurant operation system and review our foods to reduce impact to the environment. Environmental Waste amount in 2018 Conservation Company-wide food and packages waste amount Environment certification update Company-wide Foods Papers Plastics Wrappings and others As of the end of 2018, paper packgings for 135,600 46,400 34,600 5,400 49,200 tons tons tons tons tons customer use are near 100% FSC certified. As of the end of 2018, palm oil for fry use are RSPO certified and tea bags are Rain +6.8% YoY +10.0% YoY +4.8% YoY +1.9% YoY +6.3% YoY Forest Alliance certified. Foods and packaging wastes per customer Company-wide Foods Papers Plastics Wrappings and others 96.2 per person g 32.9 per person g 24.5 per person g 3.8 per person g 34.9 per person g +4.8% YoY 0.4% YoY 2.6% YoY +2.0% YoY +2.4% YoY + FSC N002365 CSR Report 2018 15
Energy measures and restaurant environment Planet Considering global warming and climate change, energy management is a serious issue. Based on the environment philosophy of act with the earth in mind , McDonald s promotes facilities and investment that ensures energy man- agement and efficiency to avoid wasteful use of energy. Restaurant environment In order to provide customers with a comfortable and relaxing store envi- Energy usage in 2018 ronment, McDonald's is implementing fine-tuned air conditioning management Nationwide energy usage per type in line with seating arrangement. In addition, from the viewpoint of health Electricity Gas Water considerations, we banned smoking on a 654.2 million kWh/yr 32.0 million m3/yr 4.734 million tons/yr system-wide scale from August 2014. Our restaurants care for the health of both our customers and our staff. 1.1% YoY - -7.0% YoY - 13.5% YoY http://www.mcd-holdings.co.jp/news/2014/re- lease-140815a.html Energy usage per 1,000 customers per type Electricity Gas Water 463.9 kWh per 1,000 customers 22.7 m3 per 1,000 customers 34,000 tons per 1,000 customers - 5.1 % YoY - 10.6 % YoY 15.0 - % YoY Overall energy usage Crude oil equivalent Crude oil equivalent Greenhouse gas emissions 206,784 0.2493 per year kl liter / 1,000 cash register count 48,569 t-CO2 / 100 million cash register - 2.3% YoY - 6.2% YoY - 13.3 % YoY CSR Report 2018 16
McDonald s & SDGs S ustainable food Sustainable food Supporting Ronald Education support Diversity & inclu- Environmental sourcing sourcing McDonald House C rime prevention / sion protection through R estaurant environment safety classes obtaining certifica- total ban on all our restaurants Sports support tions Energy measures P eople business Waste measures P eople business Supporting Ronald Packaging and recycling Toy recycle McDonald House S ustainable food Local contribution sourcing Packaging and recycling Made For You E nergy measures Sustainable food Sustainable food C orporate gover- Partnership with P ackaging and recycling sourcing sourcing nance all stakeholders Sustainable food Packaging and Packaging and Scale for Good sourcing recycling recycling CSR Report 2018 17
Third party testimonials On March 2019, McDonald s setup the three focused pillars to continue to engage in achieving a sustainable society backed by SDGs, in addition to actions that the company has been implementing. The report is easy to follow and I do recognize the behind-the-scene efforts to reach this stage, which would ve been enormous indeed. FSC® Japan is aiming for a sustainable forest management. In this regard, paper packaging at McDonald s restaurants are near 100% FSC certified as of the end of 2018. This alone is an outstanding achievement. In the light of relationship between McDonald's and SDGs in Japan , this would contribute to the 12. Responsible making and use and 15. Protecting the rich- Eishi Maezawa ness of the land as well as achieving targets relating to poverty, hunger, gender Executive Director, equality, safe water, clean energy, work environment, climate change as well as FSC®Japan peace and fairness. https://jp.fsc.org/jp-jp As a restaurant company, I look forward to seeing more people becoming aware of this particular restaurant company using certified papers in consideration of the future of the forest. In addition, I expect that they visit the restaurants to raise aware- ness towards global environment. CSR Report 2018 18
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